How the Senior Citizens' Savings Scheme works
SCSS is a government savings scheme at post offices and banks for people aged 60 or more. You deposit ₹1,000 to ₹30 lakh once, and the government pays interest every quarter at the rate in force on the day you invest: quarterly interest = deposit × rate ÷ 4. The deposit comes back after 5 years, and you can extend the account by 3 years at a time, at the rate then in force.
The deposit qualifies for section 80C in the old tax regime. The interest is taxable at your slab rate, and TDS applies if it is more than ₹1 lakh in a year (submit Form 15H to avoid it when your income is below the taxable limit). Closing early: within the first year the interest already paid is taken back; after 1 year, 1.5% of the deposit is deducted, and after 2 years, 1%.
Need a regular income from other savings too? Compare the Post Office Monthly Income Scheme and a systematic withdrawal plan.
Results are estimates for illustration only, not financial advice. Banks and schemes may round, apply TDS or use slightly different day counts — confirm figures with your bank or employer. Written by the Welthr team; last reviewed on .